Ethereum Price Under Pressure: Is This the Start of a Major Correction?

Ethereum Price Dips Below $2,200 – Ethereum (ETH) has recently slipped below its critical comfort zone, currently trading near $2,200, as escalating geopolitical tensions in the Middle East ripple through global markets. This move marks a clear breakout from its recent trading range, putting traders on alert for potential further downside.

Futures Market Turns Bearish: Rising Sell-Side Pressure

In the futures market, sentiment is turning distinctly bearish. The Taker Buy/Sell Ratio has plunged to 0.93, its lowest point in over a month, signaling increased selling aggression. Since Friday, this metric has consistently remained below 1, perfectly correlating with ETH’s drop below $2,300. This sustained sell-side pressure is eroding investor confidence and suggests that Ethereum could be entering a more prolonged correction phase.

Elevated Open Interest Masks Growing Pessimism

Despite ETH’s price decline, the Futures Open Interest (OI) remains high at $28.19 billion, which on the surface implies active participation. However, when paired with the falling Taker Buy/Sell Ratio, it reveals a market dominated by leveraged short positions rather than bullish buying. This build-up of shorts, combined with increasing volatility, could exacerbate downward momentum if buyers do not intervene with strong bids.

Technical Indicators Confirm Selling Momentum

Technical indicators further reinforce the bearish outlook. Ethereum’s daily Relative Strength Index (RSI) hovers around 34, brushing oversold territory without showing signs of reversal. Meanwhile, the Cumulative Volume Delta (CVD) remains deep in negative territory, underscoring the dominance of aggressive selling. Additionally, funding rates across most exchanges have turned negative, meaning short sellers are paying to maintain their positions—a classic sign of strong bearish conviction.

Outlook: Bears Maintain Control Amid Weak Buyer Interest

Overall, Ethereum’s technical and futures market signals point to continued downside risk. Unless buyers step in with significant volume, the current downtrend may persist, making short-term recovery attempts difficult to sustain. Traders will be closely watching key support levels and market sentiment for signs of a potential rebound.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.